Updated: Saturday April 12, 2014/AsSabt
Jamada El Thaniah 12, 1435/Sanivara
Chaitra 22, 1936, at 08:39:13 PM
The Compressed Natural Gas (CNG) (Production and Marketing)
Rules, 1992
Government
of Pakistan Ministry of Petroleum & Natural Resources
NOTIFICATION
S.R.O.714
(1)/92.―
In exercise of the powers conferred by section 2 of the Regulation of Mines and
Oilfields and Mineral Development (Government Control) Act, 1948, (XXIV of
1948), the Federal Government is pleased to make the following rules,
namely:---
PART
I
1.
Short title and Commencement.— (1) these rules may be called the
Compressed Natural Gas (CNG) (Production and Marketing) Rules, 1992.
(2)
They shall come into force at once.
2.
Definitions.―
In these rules, unless there is anything repugnant in the subject or context,---
(a) “area of
operation” means the area within which a licensee is authorized to compress
natural gas distribution of CNG in automotive(s);
(b) “Authority”
means the Oil and Gas Regulatory Authority established pursuant to the Oil and
Gas Regulatory Authority Ordinance, 2002;
(c) “consumer”
means any person or corporation who is supplied with compressed natural gas in
his automotive(s) by a licensee for his own use but not for storage,
processing, filling, sale or distribution;
(d) “container”
means any cylinder or vessel installed in an automobile or at CNG refueling
station and used for storing, transporting and distributing CNG;
(e) “corporation”
includes any corporation, joint stock company, partnership association,
business trust, organized group of persons, whether incorporated or not and
receiver or trustee of any of them;
(f) “licensee “
means a person or a corporation who holds a license under Part II of these
rules;
(g) “compressed
natural gas” or “CNG” means compressed gaseous fuel composed predominantly of
methane (CH4);
(h) “meter” means
all equipment used for the purpose of measuring the quantity of CNG supplied,
and includes all kinds of apparatus upon whose reading or indication for the
supply or sale of specified or unspecified time;
(i) “sale price”
means the price of CNG to be charged by a licensee under an agreement from the
consumer(s);
(j) “supply mains”
means a pipeline used for the transportation of natural gas for the purpose of
sale to a licensee; and
(k) “works” includes
pipeline, machinery or equipment including civil works established or
installed, owned, controlled, operated or managed in connection with the
compression of natural gas for the purpose of storage, filling or distribution
of CNG.
PART
II
1
License compulsory. No
person or corporation shall, without first obtaining a license from the
Authority, undertake, or cause to be undertaken under any agreement, the
operation or construction of works connected with compression of natural gas
for the purpose of storing, filling or distribution of CNG.
2
Application for license. (1) A person or corporation may submit an application to
the Authority for a licence of a refueling station at the existing petrol pump
or at separate site.
(2)
An application for license shall be in triplicate in the form annexed to these
rules and shall be accompanied by a fee of Rs. 25,000/- Provided that where the
grant of the license is refused, half of such fee shall be refunded to the
applicant.
5.
Consideration of application. (1) The Authority shall consider
the application having regard to all the circumstances which appear to it to be
relevant, and in particular, but not so as to limit the generality of the
foregoing, to:
(a) The public and national interest; and
(b) The financial and technical competence of the applicant.
(2) The Authority may require such changes and alternation in
the plants and in the details to be made, as it may deem expedient.
(3) A licensee shall be bound \by the provisions contained in
these rules and such other terms and conditions as may be specified in the
license.
6.
Authority may grant or refuse license. (1) The Authority may grant a
licence for the compression of natural gas for the purpose of storing, filling
or distribution of CNG in accordance with these rules and may specify in the
licence such terms and conditions as it may think fit to impose on the licensee
or it may refuse to grant the license:---
Provided
that any person or corporation who or which was engaged, immediately before the
commencement of these rules and with the approval of the Federal Government, in
the compression of natural gas for the purpose of storing, filling or
distribution of CNG or, in whose favor sanction for compression of natural gas
for the purpose of storage, filling or distribution of CNG was issued by the
Federal Government before such commencement shall be granted a licence, if such
person or corporation makes an application in the form annexed to these rules
for the purpose within three months from the commencement of these rules.
(2)
In case of refusal to grant a licence, an appeal shall lie from the decision of
the Authority to the Federal Government.
7.
Period of Licence- (1) A licence granted under these Rules shall be
initially valid for a period of up to two years during which period the
licensee shall execute the works in pursuance of rule 10. On completion of
works, satisfactory to the Authority, the period of licence shall be extended
up to a maximum period of fifteen years.
(2) On the expiry of the licence granted under these rules, a
licence, unless earlier revoked under rule 8, may be renewed from time to time
for a period of 5 years each time on payment of a fee of twenty five thousand
rupees.
(3) Every licensee desiring to have his licence renewed shall
make an application in that behalf to the Authority not less than three months
before the expiry of the period for which the licence is valid.
(4) No application for a renewal of a licence shall be
refused unless the licensee has been given an opportunity of being heard.
(5) In case of refusal to renew a licence an appeal shall lie
from the decision of the Authority to the Federal Government.
8.
Revocation or amendment of licences. -(1) The Authority may, if in its
opinion the public interest so requires, revoke a license in any of the
following cases, namely:
(a) Where the
licensee,
in the opinion of the Authority makes willful and
unreasonably prolonged default in doing any thing required of him under the
licence granted to
him or by these rules and has been informed in writing to that effect by the
Authority.
(b) Where the licensee violates any of the terms and
conditions of his license and is so informed in writing and does not rectify
the violation within the time specified,
(c) Where the licensee is, in the opinion of the authority,
unable by reason of his insolvency fully and efficiently to discharge the
duties and obligations imposed on him by his licence.
(2) Where, in the opinion of the Authority, the public and
national interest so require the Authority may, instead of revoking a licence
under sub-rule (1), permit it to remain in force in relation to the whole or
any part of the area of operation with such alteration or amendments in the
terms and conditions of the licence as it thinks fit to make or upon such new
terms and conditions as it may impose upon the licensee.
(3) In case of revocation of a license or any alternation or
amendment in the term and conditions thereof, an appeal shall lie from the
decision of the Authority to the Federal Government.
9. Licensee not to sell, assign, transfer, convey or
lease his license or works.- No
licensee shall, without the previous approval in writing of the Authority,
(a) Sell, assign, transfer, convey or lease his license or
his works or any interest therein in whole or in part;
(b) Enter into any agreement or contract for,---
(i) the amalgamation of his works with those of any other
person or corporation; or
(ii) the operation of his works by any other person or
corporation;
(c) Mortgage or otherwise create a charge upon the works or
any interest therein.
10.
Execution of works after commencement of licence.― (1) The licensee, after the
commencement of the licence, shall execute to the satisfaction of the Authority
his works in accordance with the code of practice, appended to these rules,
within a period of two years or; such further period as the Authority may allow
under special circumstances proved by the licensee to be beyond his control.
(2)
The Authority shall appoint third party inspector or inspectors for the purpose
of verification of works of the licensee in pursuance of sub rule (1) of rule
10 hereof and the licensee shall pay to such third party inspector or
inspectors a reasonable fee, as determined by the Authority from time to time,
for the purpose of such inspection or inspections.
1
Addition to or
extension of the works.― A licensee shall not
make any alternation in, addition to, or extension of, his works as given in
his plan and approved by the Authority, unless such alteration, addition or
extension is authorized by the Authority.
2
Right to discontinue
supply.― A
licensee may temporarily discontinue supply of CNG when such discontinuance
becomes necessary for the maintenance of works.
PART-III
CHARGES
AND ACCOUNTS
1
Price of CNG to be
sold.― The
price for CNG sold by a licensee to consumer(s) shall be charged in accordance
with an agreement to be concluded between the licensee and the consumer(s).
2
Measurement― (1) The amount of natural
gas supplied to a licensee and CNG supplied to a consumer shall be ascertained
by means of a correct meter. A meter shall be deemed to be correct if it
registers the amount natural gas or CNG supplied within the limits of error
approved by the Authority and complies with such conditions as may be
prescribed by the Authority.
(2)
A licensee may require a consumer to give him security deposits for the price
of CNG kit and ancillary equipment for the conversion of petrol or diesel
vehicles into CNG vehicle or to enter into an agreement for the hire and
maintenance thereof, and where the licensee or the consuming as the case may
be, enters into such as agreement the latter shall keep CNG kit and ancillary
equipment for such conversion in correct and good conditions.
15. Willful hindrance in submitting records, etc,
unlawful.―
No licensee or consumer shall willfully hinder, delay or obstruct the making,
submitting or keeping of any information, document, report, memorandum or
record or account required to be made, submitted or kept under these rules.
PART-IV
GENERAL
1
Entry, inspection and enforcement of the rules.― The Authority or
any person duly authorized by the Authority in this behalf may enter, inspect
and examine any place in which he has reason to believe that there is any
work(s) for compressing natural gas for the purpose of storing, measuring or
distribution of CNG and take other necessary steps for the due observance of
the provisions of these rules by licensees, consumers or any other person
connected with the storage, filling, distribution and use of CNG.
2
Protection for acts
done in good faith.— No suit,
prosecution, or other proceeding shall be instituted against the Authority for
anything done, or purporting to be done, in public interest under the provision
of these Rules.
3
Protection to public.―
(1)
A licensee shall locate, construct and operate his pipeline and all works
connected with CNG Refueling station, and installation of CNG equipment in
automobiles in accordance with the licence granted by the Chief Inspector of
Explosives under the Mineral Gas Safety Rules, 1960, and strictly comply with
the provisions of the Petroleum Rules 1937 and the Gas Cylinder Rules, 1940, so
as to avoid any danger to the public health or safety” and
(2)
In the application form, in the preamble, for the commas, letters and words,
"XLVI- Miscellaneous Receipts arising out of the figure and words
"-1391008-Other Receipts- Receipts under the "shall be substituted.
1
Marking of works.― A licensee shall
mark with conspicuous signs the place of his works.
2
Penalty for breach of
rules.―
Whosoever commits a breach of these rules shall without
prejudice to any other action that may be taken against him, be punishable for
every such breach with fine which may extend to fifty thousand rupees.
Sd/-
KUNWAR IDRIS
Secretary
APPLICATION
FORM FOR THE GRANT OF LICENCE UNDER
THE COMPRESSED NATURAL GAS (PRODUCTION AND
MARKETING) RULES, 1992
COMPRESSION OF NATURAL GAS FOR THE
PURPOSE OF STORAGE, FILLING AND DISTRIBUTION OF GAS.
1
Name (s) of
applicant (s) in full._________________________________________
�
2. If application is by an individual or
individuals. ____________________________
�
(a)
Address_______________________________________________________
�
(b) Nationality.
___________________________________________________
�
(c) Present
occupation and duration___________________________________
�
3. If application is by a corporation.
�
(i) (a) Present
business (s) __________________________________________
�
(b) Location(s)
_________________________________________________
�
(ii) If principal
place of business is outside
�
(4) Previous experience/knowledge of handling
high pressure fuels.
___________________________________________________________________
�
(5) Location and area of operation for the
activity/activities applied for
(Existing/proposed), and number of CNG refueling stations.
�
___________________________________________________________________
�
(6) Project details (attach a report giving
the following): -
�
A: Compression/storage/filling units.
�
(i) Nature and capacity of fixed assets.
�
(ii) Details of utilities and services.
�
(iii) Details of technical and operation
personnel with an or monogram, if new project,
�
(iv) The period of completion and time of
commissioning.
�
(iv) Capital cost, existing or estimated under
following heads (give break-down) of foreign exchange and rupee cost
separately):
�
(a) Plant cost (separately for the activities
applied for)
�
(b) Land
�
(c) Building
�
(d) Electrical equipment.
�
(e) Fire fighting equipment.
�
(f) Furniture and Fixture.
�
(g) Vehicles and transport.
�
(h) Construction and engineering (for new
projects and other miscellaneous
aspects)
�
(7) For distribution licence, indicate the
details on which CNG requirement in the area
�
of operation
(applied area) are based indicating market surveys, if any, carried out
___________________________________________________________________
�
(8) Any other relevant information that may
be helpful in the evaluation of the Project.
�
(9) Remarks.
I/We
hereby solemnly declare that all the particulars given above are correct.
I/We
solemnly undertake not to sell, mortgage, etc, either directly or indirectly or
through association, the rights privileges and obligation granted under this
license without prior approval of the Authority.
In
the event of any violation of this undertaking by me/us the Authority shall
have the right to cancel the license, provided that any dispute between the
Authority and the applicant as to whether any of my/our activities can be
considered as a violation of this undertaking shall be subject to decision in
accordance with the provision of sub-rule (3) of rules 8 of the Compressed
Natural Gas (Production & Marketing) Rules, 1992, and the appropriate
clause in the license.
Signature(s)
Applicant (s)______________________
Date
and place of applicant……………………………………………………………… (If the applicant is a
corporation, capacity in which form is signed)
In case the applicant
is an alien or a corporation incorporated outside
The Regulation of Mines and
Oil-Fields and Mineral Development [(Government Control)] Act, 1948
The Liquefied Petroleum Gas (Production
and Distribution) Rules, 1971
The North-West Frontier
Province Mining Concession Rules, 2005
The Punjab Mining Concession
Rules, 2002
The Sindh Mining Concession
Rules, 2002
The Balochistan Mineral Rules, 2002
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